GPS Industries, Inc. (GPSI) (BULLETIN BOARD: GPSN), reports that for the 3 and 6 month periods ended 30th June 2008, revenues have increased 106% and 68% respectively over the corresponding periods in 2007 equalling the full year’s revenue from 2007.
GPSI hired new CEO David Chessler in June to streamline operations, lead new sales initiatives and leverage GPSI’s industry-leading technology to expand product offerings.
Coincidental with his appointment, GPSI closed a convertible debt financing of $5.5 million and continues to acquire new sources of equipment lease financing which will allow GPSI to offer its products to its customers under the most flexible terms in the golf industry.
While the net loss for the second quarter of 2008 of $3,866 (before Deemed preferred stock dividend) increased by $1,801 (87%) over the net loss from the corresponding period in 2007 (as restated), in this quarter GPSI sold and installed 12.5 (18 hole equivalent) Inforemer Systems while simultaneously restructuring its sales force and expanding its product offering to allow it to serve additional markets.
These efforts were in addition to the significant task of reducing the ongoing operating while continuing to deliver the most technologically advanced and user-friendly family of products in the industry.
The Reports highlights include:
• Total revenues increased by 106% to $4,564,000 in the second quarter as compared to the same period in 2007 primarily due to higher average selling prices and increased service and support revenue as a result of the Uplink acquisition.
• Cost of sales increased by 102% to $3,296,000 over the corresponding period in 2007 consistent with the increased revenues.
• Gross profit increased 116% to $1,268,000 vs. $587,000 in Q2 2007 and improved slightly over Q2 2007 as a percent of revenue at 28% vs. 27%.
• Total Operating expenses increased by 107% to $4,827,000 in comparison with the corresponding period in 2007. Included in the 2008 operating expenses are several one time charges associated with the restructuring and financing activities untaken by the company totalling approximately $965,000. In addition, 2008 expenses include the operations of Uplink and GPSI Europe acquired in January 2008 and October 2007 respectively and the amortization of the estimated value of the Intellectual Property associated with the Uplink acquisition.
• Secured new financing totalling $9.0m. GPSI increased its banking facility by $3.5m, guaranteed by GWSE and raised $5.5m of convertible debt financing from Tulip Investment Group Ltd.
“The results for GPSI prior to my arrival present quite a challenge,” stated CEO David Chessler, “However, I am extremely pleased with the progress made to date. With our superior technology, quality personnel, customer support and established infrastructure, GPS Industries has the tools to be successful; we must continue to consolidate our operations, reduce costs and be more efficient in delivering our industry-leading products to the market.
“I am highly confident we will rise to the challenges leaner, better and much more successful than we have been in the past, and I look forward to building on our initial successes.”
GPS Industries, Inc. www.gpsindustries.com
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